Emerging-market stocks rise

International / 14 July 2014, 6:46pm

File picture: Alex Grimm

London - Emerging-market stocks rose as China Mobile Ltd. paced a rally by phone companies and Thai shares extended the longest winning streak in almost four years. Hungary’s forint led currencies higher.

China Mobile jumped 2.6 percent in Hong Kong after forming a cellular-tower joint venture, while the Shanghai Composite Index climbed the most in a month.

Gauges in Hungary, Turkey and Poland added at least 0.6 percent.

The forint ended a three-day retreat against the euro as industrial output rose, while the Russian ruble slid versus the dollar after fighting in Ukraine renewed the risk of sanctions.

A gauge of developing-nation telecommunications companies rose 1 percent to the highest level in more than six months.

China reports second-quarter economic- growth figures this week, while Federal Reserve Chair Janet Yellen will deliver her semiannual testimony to two congressional committees on the outlook for the US economy.

“We’re seeing some rebound in EM today on the back of stabilisation in European risk sentiment,” Michael Wang, an emerging-market strategist in London at Amiya Capital LLP, said by e-mail.

There are “expectations that China data will show further stabilisation in growth,” he said.

The developing-nation gauge has gained 5.8 percent this year and trades at 11 times projected 12-month earnings, data compiled by Bloomberg show.

The MSCI World Index has risen 4.8 percent in 2014 and is valued at a multiple of 15.1.

Hungary’s Output

The forint appreciated 0.2 percent as official data showed industrial production rose 9.6 percent in May compared with a year earlier.

China’s economy probably expanded 7.4 percent in the three months to June 30 from a year earlier, according to the median of 44 economists’ estimates compiled by Bloomberg before data scheduled for July 16.

Thailand’s SET Index added 0.7 percent in its 12th day of gains, taking the gauge to its highest close since June 2013.

Thailand’s military government plans new measures to stimulate tourism and will establish special economic zones along the country’s borders, junta leader Prayuth Chan-Ocha said on July 11.

The administration will also follow up on investment projects approved in the past two years, he said.

The Philippine Stock Exchange Index sank 1 percent, the most among benchmark gauges in Asia.

President Benigno Aquino’s popularity fell to record lows in two surveys as he prepared to address the country in response to an outcry over stimulus spending that was partially voided by the top court.